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Hydraulic Oil Basics: What You Need To Know Hydraulic oil — also called hydraulic fluid — is the lifeblood of any hydraulic system. It transfers power, protects critical components, and keeps machinery operating efficiently. Like motor oil, hydraulic fluid comes in a wide range of formulations: conventional mineral oil, full synthetic, semi-synthetic, glycol-based, water/glycol blends, and even near-pure water in certain applications. Understanding the differences helps you choose th …